Asia

Bangladesh was driven by fast fashion, but its struggling economy now needs more
7Sep By Online DeskNo Comments
Asia, Market

Bangladesh was driven by fast fashion, but its struggling economy now needs more

Bangladesh is the beating heart of the global fast fashion business. The clothes its factories export stock the shelves at H&M, Gap and Zara. Over three decades, this has transformed the country from one of the world’s poorest to a lower-middle income nation. But its garment industry, worth $55bn (£42bn) a year, is now facing an unsettled future after weeks of protests toppled the government of Sheikh Hasina in August. Hundreds of people were killed in the unrest. At least four factories were set alight, while manufacturers struggled to operate under a nationwide internet blackout. Already, some big brands have looked elsewhere for next season’s clothes, three firms that help supply to companies such as Disney, US supermarket chain Walmart and other global apparel companies t...
Read More
7Sep By Online DeskNo Comments
Asia, China, Market

Xi is immobilized due to China’s economic chaos. The entire world will compensate.

Just about everyone has a view on China’s economic troubles. Its deepening property crisis, deflationary currents, and increasing protests are all Asia observers can talk about. Yet one very important voice is barely saying a word about the state of Asia’s biggest economy: President Xi Jinping. This is true both rhetorically and by way of policy actions. The deafening silence on the latter front is especially perplexing as virtually every Chinese growth engine—from investment to exports to household spending—sputters. Less quiet are commodity traders bidding down prices of oil, copper, and other commodities as China turns further inward. Hopes for smoke signals from Beijing that fresh stimulus might be coming are being dashed day after day. And keeping global marke...
Read More
3Sep By Online DeskNo Comments
Asia, Market

Quarterly economic overview for Southeast Asia: Holding up well

In the second quarter 2024, the economies of Southeast Asia remained steadfastly resilient and broadly delivered credible economic growth, backed by an improvement in domestic and global demand. Southeast Asia’s economies remained resilient and delivered credible economic performance in the second quarter 2024.1 GDP grew in all economies, with Malaysia, the Philippines, Thailand, and Vietnam recording the fastest rate of year-on-year (y-o-y) growth over the past four quarters. Indonesia experienced a growth plateau and Singapore grew 0.1 percent slower this quarter compared to the previous quarter (Exhibit 1). Growth drivers were nuanced in every Southeast Asian economy, across a combination of strong consumption, output expansion, and higher exports, following an improvement in global...
Read More
3Sep By Online DeskNo Comments
Asia, Market, USA, World

Global Economic Situation and Outlook Update for September 2024

After years of turbulence and significant volatility in economic output, the world economy is on a more stable trajectory. Global growth performance has held up surprisingly well in the face of recent shocks, including aggressive interest rate hikes by major central banks during 2022–2023 and an escalation of conflicts with international spillovers. Robust consumer spending in several large developed and developing economies – buoyed by high levels of employment, rising real wages, and relatively healthy household balance sheets – has sustained economic resilience. In a large number of economies, inflation has slowed considerably and is approaching central bank targets, providing room for monetary easing. In most cases, economies experienced disinflation without a significant deterioratio...
Read More
30Aug By Online DeskNo Comments
Asia, China, Market

China’s central bank advances interest rate reform, and other economy stories to read this week

1. China's central bank furthers move to market-driven credit China's central bank is shifting its focus from the size of credit to its cost, aiming for a more market-driven interest rate system. However, the transition faces challenges from liquidity risks and uncooperative markets. This move, while crucial for broader financial reforms, is expected to be gradual, with the People's Bank of China facing significant hurdles as it works to balance reform goals with economic stability. "We are moving in the direction of developing market-based interest rates, but it's an arduous task and the road is long," a government adviser told Reuters anonymously. China's factory activity likely contracted for the fourth consecutive month in August, according to a recent Reuters po...
Read More
30Aug By Online DeskNo Comments
Asia, China, Market

How deeply rooted are China’s economic woes?

China’s slowdown shaped by four major problems China’s economy has continued to struggle in 2024, laying to rest any remaining hopes of a strong post-pandemic recovery. Instead of a rapid rebound as many analysts predicted, China’s reopening boom never materialised. It also appears that the Chinese government is not inclined to make major changes to its economic management and the high-profile Third Plenum came and went without significant reforms being announced. The country’s economic trajectory can be traced back to four major issues: first, the real estate market is in a protracted downturn; second, Chinese consumers have held back their spending after the economy reopened; third, deteriorating local government finances threaten a sharp slowdown in investment; and...
Read More
Manufacturing PMI fell marginally in August.
23Aug By Online DeskNo Comments
Asia, World

Manufacturing PMI fell marginally in August.

Factory business conditions fell to a three-month low in August while the services firms saw a slightly quicker business activity, according to a flash survey by HSBC Holdings Plc. The manufacturing purchasing managers’ index dropped to 57.9 in August from 58.1 in July, while the services purchasing managers’ index rose to 60.4 from 60.3 in the previous month. As a result, the composite index fell to 60.5 from 60.7 in July, the lowest reading since May. The latest manufacturing PMI reading was nevertheless above the historical average of 54 and signalled a strong improvement in the health of the sector. “Manufacturing firms reported the first decline in outstanding business volumes for the first time in eleven months, while service providers indicated another monthly ri...
Read More
Gaza war has a toll on Israel’s economy.
23Aug By Online DeskNo Comments
Asia, World

Gaza war has a toll on Israel’s economy.

Last week, Fitch Ratings downgraded Israel’s credit score from A+ to A. Fitch cited the continued war in Gaza and heightened geopolitical risks as key drivers. The agency also kept Israel’s outlook as “negative”, meaning a further downgrade is possible. After Hamas’s deadly attack on October 7, Israel’s stock market and currency nosedived. Both have since bounced back. But concerns about the country’s economy persist. Earlier this year, Moody’s and S&P also cut their credit ratings for Israel. So far, Israel’s war on Gaza has killed more than 40,000 Palestinians and decimated the economy in the besieged Palestinian enclave. There are signs of a blowback in Israel, too, where consumption, trade and investment have all been curtailed. Separately, Fitch wa...
Read More
The Indian economy is on an upward trend, according to the Finance Ministry.
23Aug By Online DeskNo Comments
Asia, World

The Indian economy is on an upward trend, according to the Finance Ministry.

New Delhi, Aug 22: The Indian economy experienced a notable upswing across various economic indicators in July 2024, signalling strong and resilient business activities with both the manufacturing and services sectors posting a robust performance, according to the Finance Ministry’s monthly review released on Thursday. “The month saw impressive milestones being reached, substantial growth in GST collections, and a significant rise in e-way bill generation, which points to an overall increase in economic activity. The stock market indices also reached record highs in July,” the review states. On balance, India’s economic momentum remains intact. Despite a somewhat erratic monsoon, reservoirs have been replenished. Manufacturing and services sectors are expanding, going by the Pu...
Read More
WazirX cancels open orders as part of its post-hack recovery efforts. Continue
22Aug By Online DeskNo Comments
Asia, World

WazirX cancels open orders as part of its post-hack recovery efforts. Continue

On Wednesday, the Indian cryptocurrency exchange WazirX announced the cancellation of all open orders within its platform. The company emphasized that this is another step in its ongoing efforts to address the fallout from a massive $230 million hack that took place in July. The move comes as WazirX attempts to resolve issues associated with its Indian Rupee (INR) and cryptocurrency balances on the platform. WazirX issued a brief statement about this action on the social media platform X (formerly Twitter) to inform users. The exchange assured its customers that any INR and crypto assets blocked in these open orders would be added back to their respective balances. The move aims to protect the integrity of the platform and facilitate an equitable outcome for users follo...
Read More